Suppose That in the Short Run, the Firm in Problem

question 7

Multiple Choice

Suppose that in the short run, the firm in Problem 3 which has production function F(L, M) must use 9 machines. If the cost of labor is $10 per unit and the cost of machines is $4 per unit, the short-run total cost of producing 60 units of output is

• A) $420.
• B) $600.
• C) $240.
• D) $572.
• E) $286.

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Definitions:

Psychokinesis

The purported skill to shift items solely through mental concentration.

Parapsychologists

Scientists who study paranormal phenomena, including psychic abilities and experiences.

Clairvoyants

are individuals who claim to have the ability to gain information about an object, person, location, or physical event through extrasensory perception.

Telepaths

Individuals who are believed or claimed to be able to communicate with others through telepathy, the direct transmission of thought from one mind to another.